BMW Tax Advantage
Your BMW model may be eligible for a tax deduction!
At BMW of Bloomfield Hills, we want to help you save on a new luxury vehicle. Especially if you're using it for business! Contact us to find out more about BMW tax deduction conditions.
Since the BMW X5, X6, X7, and iX each have a Gross Vehicle Weight Rating (GVWR) which exceeds 6,000 pounds, they may be eligible for full depreciation during the first year of ownership when used solely for business purposes*.
Purchasing an X5, X6, X7, or iX could potentially deliver significant tax advantages as compared to a similarly priced luxury sedan.
These BMW vehicles are heavy SUVs because of their Gross Vehicle Weight Rating, which is the vehicle's maximum weight when fully loaded with people and/or goods. As a result of this classification, they can serve as "transportation equipment" for your company. This results in a savings for you and your organization!
HOW TO QUALIFY FOR SIGNIFICANT TAX BENEFITS
- Purchase a BMW luxury model with a gross vehicle weight rating of over 6,000 pounds, such as the BMW X5, X6, X7, or iX.
- This car must be purchased before December 31, 2024.
- This luxury automobile must be used exclusively for work purposes.
FUTURE SAVINGS
You may be eligible for increased first-year depreciation on qualified vehicles, such as the BMW X5, X6, X7, or iX under Section 179 and 168(k) of the Internal Revenue Code. This means you can deduct 100% of the depreciation on your business's transportation equipment.
If you acquire a BMW X7 for business usage, you can deduct 100% of the vehicle's depreciation. This can amount to more than $90,000! Other luxury automobiles that do not qualify may qualify for a deduction of only 20%, or less than $20,000. **
You can continue deducting for as long as you use your BMW for business purposes. Depreciation deductions on luxury automobiles may be carried forward until the vehicle is completely depreciated or sold.
This is an excellent asset if you own a business. You can invest the savings from driving a BMW in your business, allowing it to develop even more.
Contact Us to Learn More About BMW Tax Deductions today!
COMPARISON OF TAX DEPRECIATION
$66,750 BMW X5 VS $66,750 LUXURY CARTotal allowable depreciation for 1st year of ownership** |
|
$78,300 BMW X6 VS $78,300 LUXURY CARTotal allowable depreciation for 1st year of ownership** |
|
$92,600 BMW X7 VS $92,600 LUXURY CARTotal allowable depreciation for 1st year of ownership** |
|
BMW X5** |
VS |
Luxury Car |
|
BMW X6** |
VS |
Luxury Car |
|
BMW X7**
100% Depreciation
$92,600
|
VS |
Luxury Car |
** Individual tax situations may vary. The information presented was accurate at time of publishing. Federal rules and tax guidelines are subject to change. Consult your tax advisor for complete details on rules applicable to your business. Comparisons based on Section 179 and 168(k) of the Internal Revenue Code, which allows for additional first year depreciation for eligible vehicles and reflects figures for owners who purchase vehicles for 100 percent business use and place vehicles in service by December 31, 2024. Information presented subject to change. ***BMW X5/X6 shown fully depreciated in Year One. ****”Luxury car” depreciation can continue year two at $16,400, year three at $9,800, and subsequent years at $5,860 until the vehicle is fully depreciated or sold.
Comparisons based on Section 179 and 168(k) of the Internal Revenue Code, which allows for additional first year depreciation for eligible vehicles and reflects figures for owners who purchase vehicles for 100 percent business use and place vehicles in service by December 31, 2024. Information presented subject to change.